The idea of ‘value investing’ is no rocket science. The idea is to invest in stocks that you believe are undervalued– that is, those with their market value less than their ‘fundamental value’ or ‘intrinsic value’ – based upon your investment horizon. However, determining a stock’s intrinsic value is no easy task. An investor needs to use the right tools and metrics to select such stocks. Moreover, currently, a jittery oil market, an ambiguous interest rate policy of the Fed and mixed U.S. economic data is making it more difficult to predict the fundamental value of any security at the moment.

But, even after you have identified the stocks, should you invest in all of them? After all, they are expected to add value over your investment period. The answer is an obvious ‘No’. An investor should not concentrate his/her selection in a particular sector or an industry and must diversify his holdings across various sectors. This is exactly where market jargons like ‘being overweight’ or ‘underweight’ comes into play.

While the relative importance of different sectors is generally left to the investors to decide, identifying attractive industries remains a challenging job. This is where our proven Zacks Rank system can help an investor by not only identifying the attractive stocks but also zooming in on those industries which we believe will create value for your portfolio, going ahead.

Our Zacks Rank system is a timeliness indicator, meaning that value investors can use it to identify precisely when a company's prospects are beginning to improve. Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) are the ones to look out for. Moreover, stocks rated ‘A’ or ‘B’ by our Value Score System further helps winnow the wheat from the chaff by identifying the stocks that are most likely to outperform based on their valuation measures. When combined with the Zacks Rank, they create a powerful combination for identifying value stocks. Also, by leveraging the power of earnings estimate revisions in the recent past, the Zacks Industry Rank highlights the most upbeat industries at the moment.

Based on the above measures, we have short listed 5 stocks that have a healthy Zacks Rank and lie in our top 50 ranked industries.

Cooper Tire & Rubber Co. (CTB - Analyst Report), with a Zacks Rank #1, Value Score ‘A’ and Industry Rank #4

Cooper Tire & Rubber Company specializes in the manufacture and marketing of automotive products. Products for Cooper's Tire Group include automotive, motorcycle and truck tires, inner tubes, tread rubber and equipment.

Enviva Partners, LP (EVA - Snapshot Report), with a Zacks Rank #1, Value Score ‘A’ and Industry Rank #12

Enviva Partners is a master limited partnership which owns and operates wood pellet production plants. It serves primarily in the United States and Europe.

JinkoSolar Holding Co., Ltd. (JKS - Snapshot Report), with a Zacks Rank #1, Value Score ‘A’ and Industry Rank #19

JinkoSolar Holding Co., Ltd. is a solar product manufacturer whose principal products are silicon wafers, solar cells and solar modules, which are all along the photovoltaic value chain, with a global network spanning across Europe, North America and Asia.

Pilgrim's Pride Corporation (PPC - Analyst Report) with a Zacks Rank #1, Value Score ‘A’ and Industry Rank #3

Pilgrim's Pride is one of the largest poultry companies in the US, Mexico and Puerto Rico. The company's fresh chicken retail line is sold throughout the US, Puerto Rico, and in the northern and central regions of Mexico.

ReneSola Ltd. (SOL - Analyst Report) with a Zacks Rank #1, Value Score ‘A’ and Industry Rank #19

RENESOLA and its subsidiaries are engaged in manufacturing solar wafers in the People's Republic of China. The company's solar wafers are sold to both Chinese and international photovoltaic cell and module manufacturers.